WASHINGTON, Aug. 23, 2017 /PRNewswire/ -- The Q3 MetLife
& U.S. Chamber of Commerce Small Business Index (Index),
released today, recorded an overall score of 62.3, up 1.7 points
from the Q2 score of 60.6, driven in part by an eight point jump in
the percentage of small business owners optimistic about the
national economy in the third quarter — 41 percent compared to 33
percent last quarter. Based on telephone interviews with 1,000
small business owners and operators, the survey also found that
almost two-thirds of respondents rated the overall health of their
small business as good, which is consistent with last quarter.
A majority (56 percent) of small businesses expect revenue to
increase in the year ahead and 81 percent are comfortable with
their current cash flow situation. This positive news comes despite
the majority of respondents reporting slightly more guarded
expectations about hiring and investment compared to the second
quarter of 2017. The Q3 Index found that 24 percent of small
business owners plan to increase staff, down from 29 percent in
Q2.
"Small businesses are important to our local communities and the
national economy. Their increased optimism this quarter reflects
the trends of the broader business environment," said James W. Reid, executive vice president for
Regional & Small Business Solutions at MetLife. "The Small
Business Index helps us better understand this important sector, so
we can work on solutions by tackling the challenges small business
owners face every day."
Small Business Owners Split on if Job Candidates Are Prepared
for the Workforce
In a spotlight question addressing
workforce challenges, half of small business owners (50 percent)
believe job candidates are not prepared for today's job
opportunities. Small businesses with a negative impression of job
candidates are 25 percent less likely to increase staff over the
next 12 months.
Respondents noted that the skills needed for the jobs available
are not being taught – commonly referred to as the skills gap. In
Q2, the Index found that only approximately two in five small
business owners rated the quality of potential hires as good.
"Small business owners need a qualified workforce to unlock the
full potential of their sector," said Suzanne Clark, senior executive vice president
at the U.S. Chamber of Commerce. "Insights uncovered in this
quarter's Small Business Index reinforce the importance of the
business community and our education leaders collaborating on
effective ways to close the skills gap. It's a must to produce a
workforce that in turn will power a stronger economy."
The Voice of the Small Business Owner — Workforce
This research effort includes gathering personal stories that
illuminate the unique challenges facing today's small businesses.
In Q3, small business owners went into detail about the challenges
they face finding appropriately skilled or trained workers to fill
open positions.
A small business owner in Louisiana said:
"I believe a barrier to
industry is the slowly deteriorating pool of skilled laborers.
College is not for everyone. We need more vocational and tech
training. Our society feels a college degree should be obtained by
everyone, and it shouldn't."
A small business owner in Texas
said:
"The biggest challenge in
growing my business is finding highly trained, highly skilled
workers."
Small Business Owners Indicate Positive Outlook for Company
and Operating Environment
The Q3 Index produced an overall
score of 62.3, up 1.7 points from the Q2 score of 60.6 (on a scale
of 0 to 100), which indicates that 62.3 percent of small business
owners currently have a positive outlook for their company and the
environment in which they operate. This improvement stems from
small business owners' perceptions of the economy, paired with
confidence in the health of their businesses. The Index score
takes into account small business owners' responses to 10 questions
spanning three topics: the current health of their business; their
views on the economy and other external forces that impact their
company; and their plans and expectations for the near future.
The Index is part of a multiyear collaboration by MetLife and
the U.S. Chamber to elevate the voice of America's small business
owners and highlight the important role they play in the nation's
economy. The initiative will produce the quarterly MetLife &
U.S. Chamber of Commerce Small Business Index; a nationwide event
series, including the upcoming Small Business Summit, September 10-13 in Washington, D.C. where presenters will share
information that helps businesses save money, save time, and foster
growth; and the annual Dream Big Small Business Awards program,
which celebrates the achievements of small businesses and honors
their contributions to America's economic growth.
Please visit www.SBIndex.us for the full results and
methodology.
About the U.S. Chamber of Commerce
The U.S. Chamber of
Commerce is the world's largest business federation representing
the interests of more than 3 million businesses of all sizes,
sectors, and regions, as well as state and local chambers and
industry associations. For more information, visit
www.uschamber.com.
About MetLife
MetLife, Inc. (NYSE: MET), through its
subsidiaries and affiliates ("MetLife"), is one of the world's
leading financial services companies, providing insurance,
annuities, employee benefits and asset management to help its
individual and institutional customers navigate their changing
world. Founded in 1868, MetLife has operations in more than 40
countries and holds leading market positions in the United States, Japan, Latin
America, Asia, Europe and the Middle East. For more information, visit
www.metlife.com.
www.uschamber.com @USChamber www.freeenterprise.com
www.metlife.com/mysmallbusiness @metlife
Contact: U.S. Chamber of Commerce
Bridgett Hebert
(202) 463-5682
MetLife
David Hammarström
(212) 578-2736
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SOURCE U.S. Chamber of Commerce; MetLife